In my weekend Saturday Night Quarterback I said that this week would, probably, answer the question of whether Friday’s big bounce was just a bounce, the start of a buy on the dip rally, or even a bear market rally with a bit of staying power. Two days into the week I think the market action is moving in favor of a bear market rally, one of those often quite powerful upside moves that punctuate extended bear markets.
Today, March 15, shares of Marvell Technology Group (MRVL) closed at $48.08, slightly above my target price of $48 a share. In this very volatile market for technology stocks, I’m going to take my almost 20% profit (19.90% to be exact) and sell these shares out of my Jubak Picks Portfolio tomorrow, March 16. The profit came in less than two weeks from my March 6 buy.
While the NASDAQ Composite and Standard & Poor’s 500 were flirting with a correction on March 4, Marvell Technology Group (MRVL) has moved into its own better than 10% drop in just the last week. The stock is down 13.89% in the last week as of the close yesterday March 4 at $40.10. The stock is now down 15.66% for 2021 to date. I’m going to use this correction to add the shares to my Jubak Picks Portfolio on March 5 with a target price of $48 a share. The stock pays a tiny 0.60% dividend.
